By Mark Squibb
Mount Pearl City council last week approved a new scaled taxation program to encourage those looking to build high density housing within the city.
Applicants can apply for financial assistance in the form of a three-year scaled-tax break on residential property tax based on both high density builds as well as affordable housing units for apartment complexes with four units or more. In the first year, the applicant will pay 20 percent of their regular property taxes. In the second year, the applicant will pay 50 percent of their property tax. In the third and final year, the applicant pays 80 percent. The City will cover the remainder of the taxes.
“By implementing a structured and phased approach to taxation, the program provides applicants with the stability and incentives needed to lay a solid foundation for sustained progress and long-term success within the City of Mount Pearl,” said councillor Mark Rice. “This program is part of the City’s broader commitment to fostering economic development and addressing housing needs. Recognized as an exceptional place to live, work, and raise families, Mount Pearl is renowned for its high quality of life, vibrant community, and strategic advantages as a premier business destination. By encouraging the construction of high-density and affordable housing, the City seeks to ensure that its residents have access to diverse housing options while maintaining its reputation as a thriving hub for families and businesses alike.”
Applicants are eligible for up to a maximum tax-break of $2,000 per unit and a maximum of $10,000 annually. The program does not discount annual water and sewer or waste fees.
The City has budgeted $170,000 under it’s Housing Accelerator Fund (HAF) for the program.
Members of council applauded the policy.
“I just wanted to comment how important I think this is,” said councillor Chelsea Lane. “It’s excellent that we’re spearheading this by offering it along with our HAF funding. We’re trying to encourage more people to move to the city of Mount Pearl and unfortunately, we’re landlocked, so the only way to go is up. And encouraging people to develop more properties to house more people is certainly going to increase our population, and so I see so many tangible benefits to this.”
Councillor Bill Antle and Deputy Mayor Nicole Kieley echoed Lane’s comments. Antle noted that an increased population would help grow the City’s tax base, while Kieley added that high density housing is often a necessity for those on fixed incomes, such as seniors, and folks working towards owning a property of their own one day.
The motion passed unanimously.